Central Petroleum has sold its 50 per cent stake in the Range gas project to a Senex Energy subsidiary for $12.5 million.

“Exiting the Range Project is consistent with our strategic review and frees up significant capital, providing Central with enhanced financial strength as we focus on the balance of our portfolio and pursue other strategic options available to the company at this time,” Central managing director and chief executive officer Leon Devaney said.

The Range gas project covers an area of 77sq km in Queensland’s Surat Basin and contains 270 PJ of 2C contingent gas resources.

It is surrounded by major coal seam gas (CSG) developments and pipeline infrastructure.

A spokeswoman for Senex said that, while the company was demonstrating preparedness for further growth through its interest in the exploration block, its priority remained on securing the necessary Commonwealth approvals to proceed with its planned $1 billion Surat Basin Expansion.  

Central said its transaction with Senex was not subject to conditions precedent and completion was expected by the end of November.

Gas production from the Range gas project is reserved for domestic use.

Incitec Pivot Queensland Gas – a subsidiary of Incitec Pivot Limited – gained a 50 per cent interest in the tenement by funding an exploration program through 2019.